<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED March 31, 1998
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number: 0-22669
----------------------
AURORA BIOSCIENCES CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 33-0669859
- --------------------------------------- --------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
11010 Torreyana Road, San Diego, CA 92121
- --------------------------------------- --------------------
(Address of principal executive offices) (Zip code)
(619) 452-5000
- -------------------------------------------------------------------------------
(Registrant's telephone number, including area code)
- -------------------------------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Outstanding at
Class April 30, 1998
----- --------------
Common Stock, $.001 par value 17,070,368
<PAGE> 2
AURORA BIOSCIENCES CORPORATION
FORM 10-Q
INDEX
<TABLE>
<CAPTION>
PAGE NO.
--------
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
<S> <C>
Balance Sheets - March 31, 1998 (Unaudited) and December 31, 1997......................3
Statements of Operations (Unaudited) - Three months ended March 31, 1998 and 1997......4
Statements of Cash Flows (Unaudited) - Three months ended March 31, 1998 and 1997......5
Notes to Financial Statements (Unaudited)..............................................6
ITEM 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.............................................................8
PART II. OTHER INFORMATION
ITEM 2. Changes in Securities and Use of Proceeds....................................11
ITEM 6. Exhibits and Reports on Form 8-K.............................................11
SIGNATURE.....................................................................................12
</TABLE>
2
<PAGE> 3
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.
AURORA BIOSCIENCES CORPORATION
BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
1998 1997
------------- ------------
(Unaudited) (Note)
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents $19,258,576 $23,168,690
Investment securities, available-for-sale 27,873,113 25,737,734
Accounts receivable under collaborative agreements 1,188,683 3,207,166
Prepaid expenses 1,229,701 563,017
Other current assets 1,010,310 763,330
----------- -----------
Total current assets 50,560,383 53,439,937
Equipment, furniture and leaseholds, net 8,149,351 6,691,939
Notes receivable from officers and employees 290,000 290,000
Restricted cash 1,330,673 1,311,923
Other assets 1,231,750 1,302,033
----------- -----------
$61,562,157 $63,035,832
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,926,297 $ 1,111,946
Accrued compensation 351,418 278,852
Other current liabilities 149,556 227,778
Unearned revenue 2,396,501 2,324,001
Capital lease obligations, current portion 1,419,692 1,153,185
----------- -----------
Total current liabilities 6,243,464 5,095,762
Capital lease obligations, less current portion 4,207,007 3,421,652
Other noncurrent liabilities 155,528 154,346
Stockholders' equity:
Common stock, $.001 par value, 50,000,000 shares
authorized, 17,038,353 and 17,032,885 shares issued and
outstanding at March 31, 1998 and December 31, 1997, 17,038 17,033
respectively
Additional paid-in capital 60,499,891 60,497,472
Deferred compensation (2,828,152) (3,072,560)
Accumulated deficit (6,732,619) (3,077,873)
----------- -----------
Total stockholders' equity 50,956,158 54,364,072
----------- -----------
$61,562,157 $63,035,832
=========== ===========
</TABLE>
Note: The balance sheet at December 31, 1997 has been derived from the audited
financial statements at that date but does not include all of the
information and footnotes required by generally accepted accounting
principles for complete financial statements.
See accompanying notes.
3
<PAGE> 4
AURORA BIOSCIENCES CORPORATION
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended March 31,
----------------------------
1998 1997
------------ ------------
<S> <C> <C>
Revenue:
Screening systems $ 1,062,500 $ 650,000
Screening services 1,322,721 405,000
License fees 1,262,500 487,500
----------- -----------
Total revenue 3,647,721 1,542,500
Operating expenses:
Cost of screening systems 3,204,804 687,612
Cost of screening services 748,909 287,440
Research and development 2,741,519 910,829
Selling, general and administrative 1,197,817 642,168
----------- -----------
Total operating expenses 7,893,049 2,528,049
----------- -----------
Loss from operations (4,245,328) (985,549)
Interest income 741,358 203,183
Interest expense (150,776) (59,262)
----------- -----------
Net loss $(3,654,746) $ (841,268)
=========== ===========
Basic and diluted loss per share $ (0.23) $ (0.08)
=========== ===========
Shares used in computing basic and diluted loss per share 16,016,063 11,164,104
=========== ===========
</TABLE>
See accompanying notes.
4
<PAGE> 5
AURORA BIOSCIENCES CORPORATION
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended March 31,
-----------------------------
1998 1997
------------ ------------
<S> <C> <C>
OPERATING ACTIVITIES:
Net loss $(3,654,746) $ (841,628)
Adjustments to reconcile net loss to net cash (used in)
provided by operating activities:
Depreciation and amortization 455,477 152,449
Amortization of deferred compensation 244,408 106,437
Changes in operating assets and liabilities:
Accounts receivable under collaborative agreements 2,018,483 966,523
Prepaid expenses and other current assets (913,664) (411,364)
Accounts payable and accrued compensation 886,917 301,643
Other current liabilities (78,222) --
Unearned revenue 72,500 855,000
Other noncurrent liabilities 1,182 --
----------- -----------
Net cash (used in) provided by operating activities (967,665) 1,129,060
INVESTING ACTIVITIES:
Purchases of investment securities (9,385,379) (1,485,021)
Sales and maturities of investment securities 7,250,000 1,600,000
Purchases of equipment, furniture and leaseholds (535,117) (537,431)
Notes receivable from officers and employees -- (60,000)
Restricted cash (18,750) --
Other assets 70,283 38,399
----------- -----------
Net cash used in investing activities (2,618,963) (444,053)
FINANCING ACTIVITIES:
Cost of convertible preferred stock, net -- (36,528)
Issuance of common stock, net 2,424 44,342
Principal payments on capital lease obligations (325,910) (106,116)
----------- -----------
Net cash used in financing activities (323,486) (98,302)
----------- -----------
Net (decrease) increase in cash and cash equivalents (3,910,114) 586,705
Cash and cash equivalents at beginning of period 23,168,690 3,914,038
----------- -----------
Cash and cash equivalents at end of period $19,258,576 $ 4,500,743
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid $ 150,776 $ 59,262
=========== ===========
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND
FINANCING ACTIVITIES:
Property and equipment acquired under capital leases $ 1,377,772 $ 506,074
=========== ===========
</TABLE>
See accompanying notes.
5
<PAGE> 6
AURORA BIOSCIENCES CORPORATION
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998
(UNAUDITED)
1. BASIS OF PRESENTATION
The accompanying unaudited financial statements of Aurora Biosciences
Corporation ("Aurora" or the "Company") have been prepared in accordance
with generally accepted accounting principles for interim financial
information and with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the information
and footnotes required by generally accepted accounting principles for
complete financial statements. In the opinion of management, all
adjustments, consisting of normal recurring adjustments, considered
necessary for a fair presentation have been included. Interim results
are not necessarily indicative of results for a full year. These
financial statements should be read in conjunction with the audited
financial statements and footnotes thereto included in the Company's
Annual Report on Form 10-K for the year ended December 31, 1997, as
filed with the Securities and Exchange Commission ("SEC").
2. LOSS PER SHARE
In 1997, the Financial Accounting Standards Board issued Statement No.
128, "Earnings per Share," (SFAS 128) which replaced the calculation of
primary and fully diluted earnings per share with basic and diluted
earnings per share. Unlike primary earnings per share, basic earnings
per share excludes any dilutive effect of options, warrants and
convertible securities, except that, for the periods prior to the
Company's initial public offering in June 1997, convertible preferred
shares are included on an as-if converted basis in the basic
computation. Diluted earnings per share is very similar to the
previously reported fully diluted earnings per share. All earnings per
share amounts for all periods have been restated to conform to SFAS 128
and the requirements of the recently effective SEC Staff Accounting
Bulletin No. 98.
The following table details the computation of basic and diluted loss
per share:
<TABLE>
<CAPTION>
Three Months Ended March 31,
---------------------------
1998 1997
------------- -----------
<S> <C> <C>
Numerator:
Net loss $(3,654,746) $ (841,268)
----------- -----------
Numerator for basic and diluted loss per share -
income available to common stockholders $(3,654,746) $ (841,268)
=========== ===========
Denominator:
Weighted average common shares 16,016,063 1,248,131
Effect of assumed conversion of convertible
preferred stock to common stock from the date of
issuance -- 9,915,973
----------- -----------
Denominator for basic and diluted loss per share -
adjusted weighted average common shares 16,016,063 11,164,104
=========== ===========
Basic and diluted loss per share $ (0.23) $ (0.08)
=========== ===========
</TABLE>
6
<PAGE> 7
AURORA BIOSCIENCES CORPORATION
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 1998
(UNAUDITED)
Loss per share information as presented on the statement of operations
for the three months ended March 31, 1997 has been presented because
historical loss per share information is not indicative of the Company's
capital structure following its June 1997 initial public offering.
Historical loss per share, without an adjustment for convertible
preferred stock, would have been ($0.67) for the three months ended
March 31, 1997 (basic and diluted).
3. NEW ACCOUNTING STANDARDS
Effective January 1, 1998, the Company adopted the Financial Accounting
Standards Board's Statement of Financial Accounting Standards No. 130,
Reporting Comprehensive Income ("SFAS 130") and Statement of Financial
Accounting Standards No. 131, Disclosures about Segments of an
Enterprise and Related Information ("SFAS 131"). SFAS 130 requires that
all components of comprehensive income, including net income, be
reported in the financial statements in the period in which they are
recognized. Comprehensive income is defined as the change in equity
during a period from transactions and other events and circumstances
from non-owner sources. Net income and other comprehensive income,
including foreign currency translation adjustments, minimum pension
accrual, and unrealized gains and losses on investments, shall be
reported, net of their related tax effect, to arrive at comprehensive
income. The adoption of SFAS 130 did not affect the results of
operations or financial position because the Company's only component of
comprehensive income is unrealized gains and losses on investments,
which is not significant. SFAS 131 establishes standards for the way
that public business enterprises report information about operating
segments in annual financial statements and requires that those
enterprises report selected information about operating segments in
interim financial reports. SFAS 131 also establishes standards for
related disclosures about products and services, geographic areas and
major customers. The adoption of SFAS 131 did not affect the results of
operations or financial position, and did not affect the disclosure of
segment information because the Company operates in only one operating
segment.
7
<PAGE> 8
AURORA BIOSCIENCES CORPORATION
MARCH 31, 1998
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This Form 10-Q contains certain statements of a forward-looking nature relating
to future events or the future financial performance of the Company. Such
statements are only predictions and actual events or results may differ
materially. Factors that could cause or contribute to such differences include,
without limitation, those discussed in this Item 2 as well as those discussed in
the Company's Annual Report on Form 10-K for the year ended December 31, 1997,
as filed with the Securities and Exchange Commission.
OVERVIEW
Aurora Biosciences Corporation ("Aurora" or the "Company") designs and develops
proprietary drug discovery systems, services and technologies to accelerate and
enhance the discovery of new medicines. From May 8, 1995 (inception) to December
31, 1995, the Company's operating activities related primarily to recruitment of
personnel and raising capital. Operating activities since the beginning of 1996
have focused principally on the development of an integrated technology platform
comprised of a portfolio of proprietary fluorescent assay technologies and its
Ultra-high Throughput Screening System ("UHTSS") designed to allow assay
miniaturization and automation with the potential to help change the paradigm of
drug discovery.
The Company had an accumulated deficit of $6.7 million as of March 31, 1998.
Although the Company reported a small net income in 1997, the $3.7 million net
loss in the first quarter of 1998 reflects the Company's expectation that
substantial expenditures will be made in 1998 to accelerate the development of
UHTSS technology. Accordingly, the Company does not expect to be profitable in
1998. The Company's ability to achieve sustained profitability in the future
will depend in part on its ability to successfully develop its UHTSS, provide
screen development and screening services to pharmaceutical and biotechnology
companies, achieve acceptable performance specifications for the UHTSS and gain
industry acceptance of its systems, services and technologies. Payments from
corporate collaborators and interest income are expected to be the only sources
of revenue for the foreseeable future. Royalties or other revenue from
commercial sales of products developed from any compounds identified by using
the Company's technologies are not expected for at least several years, if at
all. Payments under collaborative agreements will be subject to significant
fluctuation in both timing and amount. Furthermore, the Company will continue to
follow a strategy of investing in new technologies to expand its technology
platform. Accordingly, the Company's results of operations for any period may
not be comparable to the results of operations for any other period.
RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 1998 AND 1997
Total revenue increased 136% to $3,648,000 for the three months ended March 31,
1998 from $1,543,000 for the three months ended March 31, 1997. The increase in
revenue resulted primarily from the Company's collaborative agreements with
Warner-Lambert Company ("Warner-Lambert") and Merck & Co., Inc. ("Merck"), which
were executed in the second half of 1997. Screening systems, screening services
and license fees revenue under these collaborative agreements were recorded in
the 1998 period while no such revenue was recorded in the 1997 period. Screening
services revenue also increased as a result of expanded screen development
activity under the Company's collaborative agreements with Bristol-Myers Squibb
Pharmaceutical Research Institute ("BMS") and Eli Lilly and Company ("Lilly").
8
<PAGE> 9
AURORA BIOSCIENCES CORPORATION
MARCH 31, 1998
Total operating expenses increased 212% to $7,893,000 for the three months ended
March 31, 1998 from $2,528,000 for the three months ended March 31, 1997. The
increase in operating expenses resulted primarily from the growth of the
Company, reflected by the growth to 116 employees at March 31, 1998 from 51 at
March 31, 1997 and expansion of the Company's facilities to 81,000 square feet
from 22,000 square feet in October 1997.
Cost of screening systems increased 366%. In addition to the factors noted
above, the increase was attributable to expanded development activity for the
UHTSS, reflected by increased purchases of materials and supplies as well as
increased technology development expenses related to the development of the
UHTSS for the Company's collaborators.
Cost of screening services increased 161%. In addition to the factors noted
above, the increase resulted from development of screening assays for
Warner-Lambert and Merck under collaborative agreements executed in the second
half of 1997 and expanded development of screening assays for BMS and Lilly.
Research and development expenses increased 201%. In addition to the factors
noted above, the increase was due to the expansion of the Company's human cell
functional genomics program, ongoing development of its own UHTSS and investment
in new technologies to expand the Company's technology platform.
Selling, general and administrative expenses increased 87% with the overall
expansion of the Company's operations as noted above.
Net interest income increased 310% to $591,000 for the three months ended March
31, 1998 from $144,000 for the three months ended March 31, 1997. The increase
reflected interest income from increased cash and investment balances resulting
from receipts under collaborative agreements and the Company's initial public
offering in June 1997. The increased interest income was partially offset by
increased interest expense incurred on capital lease obligations entered into
during the last nine months of 1997 and the first three months of 1998.
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 1998, Aurora held cash, cash equivalents and investment securities
available-for-sale of $47.1 million and working capital of $44.3 million. The
Company has funded its operations through March 31, 1998 primarily through the
issuance of equity securities with aggregate net proceeds of $56.8 million,
receipts from corporate collaborations and strategic technology alliances of
$22.0 million, capital equipment lease financing of $6.8 million and interest
income of $3.1 million.
The Company has entered into non-cancelable purchase commitments for certain
components that will be used in its screening systems. Such commitments total
approximately $8.3 million for the remainder of 1998.
To date, all revenue received by the Company has been from collaborations,
interest earned on cash and investment balances and technology alliances. The
Company expects that substantially all revenue for the foreseeable future will
come from collaborators and interest income.
The Company's strategy for the development of the UHTSS includes the
establishment of a syndicate of collaborators to provide the Company with
development funding, technology and personnel resources and system validation.
To date, the Company's UHTSS co-development syndicate includes BMS, Lilly,
9
<PAGE> 10
AURORA BIOSCIENCES CORPORATION
MARCH 31, 1998
Warner-Lambert and Merck. In addition, the Company has entered into
collaborations with Roche Bioscience Corporation and Allelix Biopharmaceuticals,
Inc. for screening services.
The Company's ability to achieve sustained profitability will be dependent upon
its ability to enter into additional corporate collaborations. Although the
Company is actively seeking to enter into additional collaborations, there can
be no assurance that the Company will be able to negotiate additional
collaborative agreements on acceptable terms, if at all. The Company's current
collaborative agreements provide that the agreements generally may be terminated
by the collaborator without cause upon short notice, which terminations would
result in loss of anticipated revenue. Although the Company's collaborators
would be required to pay certain penalties in the event they terminate their
agreements without cause, there can be no assurance that any one or more of the
Company's collaborators will not elect to terminate their agreements with the
Company. In addition, the amount and timing of resources that current and future
collaborators, if any, devote to collaborations with the Company are not within
the control of the Company. There can be no assurance that such collaborators
will perform their obligations as expected, that the Company will derive any
additional revenue from such agreements or that such current or future
collaborative agreements will be successful and provide the Company with
expected benefits. Termination of the Company's existing or future collaborative
agreements, or the failure to enter into a sufficient number of additional
collaborative agreements on favorable terms, could have a material adverse
effect on the Company's business, financial condition and results of operations.
The Company may be required to raise additional capital over a period of several
years in order to conduct or expand its operations or acquire new technology.
Such capital may be raised through additional public or private equity
financings, borrowings and other available sources. No assurance can be given
that the Company's business or operations will not change in a manner that would
consume available resources more rapidly than anticipated, or that substantial
additional funding will not be required before the Company can achieve or
sustain profitable operations. There can be no assurance that the Company will
continue to receive funding under its existing collaborative agreements or that
the Company's existing or potential future agreements will be adequate to fund
the Company's operations. If additional funding becomes necessary, there can be
no assurance that additional funds will be available on favorable terms, if at
all. If adequate funds are not available, the Company may be required to curtail
operations significantly or to obtain funds by entering into arrangements with
others that may have a material adverse effect on the Company's business,
financial condition and results of operations.
IMPACT OF YEAR 2000
The Company recognizes the need to ensure its operations will not be adversely
impacted by the inability of the Company's computer systems to process data
having dates on or after January 1, 2000 (the "Year 2000" issue). The Company is
currently addressing the Year 2000 issue with respect to the availability and
integrity of its financial systems and the reliability of its operating systems.
The Company is also communicating with significant suppliers, financial
institutions and others with whom it conducts business transactions to assess
whether they are Year 2000 compliant.
While the Company believes its planning efforts are adequate to address its Year
2000 concerns, there can be no assurance that the systems of other companies on
which the Company's systems and operations rely will not have a material adverse
effect on the Company. In addition, the potential impact of the Year 2000 issue
on significant suppliers, financial institutions and others with whom the
Company does business cannot be reasonably estimated at this time. The cost of
the Year 2000 initiatives to be executed by the Company is not expected to be
material to the Company's results of operations or financial position.
10
<PAGE> 11
AURORA BIOSCIENCES CORPORATION
March 31, 1998
PART II - OTHER INFORMATION
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
Net offering proceeds to the Company from its initial public offering in June
1997 and partial exercise of an over-allotment option granted to the
underwriters totaled $37.7 million. Through March 31, 1998, approximately $13.8
million was used for general corporate purposes, approximately $3.5 million was
used for enhancement of internal research and development capabilities and
approximately $2.0 million was used for facilities expansion and improvements.
No payments were made to directors, officers or affiliates of the Company or 10%
owners of any class of equity securities of the Company, other than compensation
payments to officers of the Company. Approximately $18.4 million of the net
offering proceeds remain as working capital, held as temporary investments.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
<TABLE>
<CAPTION>
(a) Exhibits:
<S> <C>
10.31(1)* Packard Aurora Supply Agreement dated February 5, 1998 between the Registrant and
Packard Instrument Company, Inc.
10.32(1)* Amendment to Collaboration and License Agreement dated February 7, 1998, to
Collaboration and License Agreement effective as of April 24, 1996 between the
Registrant and Packard Instrument Company, Inc.
10.33(1) Amendment dated January 2, 1998, to Employment Agreement between the Registrant and
J. Gordon Foulkes.
27.1 Financial Data Schedule related to the Financial Statements for the period ended
March 31, 1998.
- ---------------
(1) Previously filed as exhibits of the same number with the Registrant's Annual Report on
Form 10-K for the year ended December 31, 1997 (No. 0-22669) and incorporated herein by
reference.
* The Company has requested confidential treatment with respect to certain portions of
this exhibit. Omitted portions have been filed separately with the Securities and
Exchange Commission.
(b) Reports on Form 8-K:
No reports on Form 8-K were filed during the quarter ended March 31, 1998
</TABLE>
11
<PAGE> 12
AURORA BIOSCIENCES CORPORATION
March 31, 1998
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed in its behalf by the
undersigned thereunto duly authorized.
Aurora Biosciences Corporation
Date: May 15, 1998 By: /s/ Deborah J. Tower
----------------------
Deborah J. Tower
Vice President, Finance and Administration
(on behalf of the Registrant and as Registrant's
Principal Financial and Accounting Officer)
12
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AT MARCH 31, 1998 (UNAUDITED) AND THE STATEMENT OF OPERATIONS FOR THE
THREE MONTHS ENDED MARCH 31, 1998 (UNAUDITED) AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1998.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<CASH> 19,258,576
<SECURITIES> 27,873,113
<RECEIVABLES> 1,188,683
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 50,560,383
<PP&E> 9,711,474
<DEPRECIATION> 1,562,123
<TOTAL-ASSETS> 61,562,157
<CURRENT-LIABILITIES> 6,243,464
<BONDS> 0
0
0
<COMMON> 17,038
<OTHER-SE> 50,939,120
<TOTAL-LIABILITY-AND-EQUITY> 61,562,157
<SALES> 0
<TOTAL-REVENUES> 3,647,721
<CGS> 0
<TOTAL-COSTS> 3,953,713
<OTHER-EXPENSES> 3,939,336
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 150,776
<INCOME-PRETAX> (3,654,746)
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,654,746)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,654,746)
<EPS-PRIMARY> (0.23)
<EPS-DILUTED> (0.23)
</TABLE>
